Intertape Polymer Group Inc. (TSX:ITP) (the “Company”) today released results for its second quarter ended June 30, 2017. All amounts in this press release are denominated in US dollars unless otherwise indicated and all percentages are calculated on unrounded numbers. For more information, you may refer to the Company’s management’s discussion and analysis and unaudited interim condensed consolidated financial statements and notes thereto as of and for the three and six months ended June 30, 2017.
Second Quarter 2017 Highlights (as compared to second quarter 2016):
• Revenue increased 4.3% to $210.2 million primarily due to an increase in average selling price including the impact of product mix, additional revenue from the Powerband Acquisition(1), and the non-recurrence of the South Carolina Commissioning Revenue Reduction(2) in the second quarter of 2016.
• Gross margin decreased to 22.5% from 25.7% primarily due to the non-recurrence of South Carolina Flood Insurance Proceeds(2) of $4.5 million recorded in the second quarter of 2016.
• Net earnings attributable to the Company shareholders (“IPG Net Earnings”) decreased $3.5 million to $10.2 million, primarily due to a decrease in gross profit and an increase in selling, general and administrative expenses (“SG&A”), partially offset by a decrease in manufacturing facility closures, restructuring and other related charges and income tax expense.
• Adjusted EBITDA(3) decreased 13.7% to $28.5 million primarily due to a decrease in gross profit mainly related to the non-recurrence of South Carolina Flood Insurance Proceeds(2) of $4.5 million received in the second quarter of 2016. Included in adjusted EBITDA for the second quarter of 2017 and 2016 are advisory fees and other costs associated with mergers and acquisitions activity totalling $2.3 million and $0.8 million, respectively.
“For the second quarter, Adjusted EBITDA was $28.5 million or flat compared to last year when you exclude the $4.5 million of South Carolina Flood Insurance Proceeds received in the same period in 2016 despite some headwinds in the current period,” said Greg Yull, President and CEO. “We are very happy with the results of our efforts in our M&A program in that we successfully completed the Capstone and Cantech transactions at the end of June and beginning of July for which we incurred approximately $2.3 million in advisory fees and other costs in the second quarter. The main headwinds that caused our results to be slightly below our expectations are Powerband’s performance that continues to suffer from external competitive and supply chain pressures, and lower than expected sales volumes stemming from the timing of commercialization of masking tape and stencil products produced in our Blythewood facility. The operational bright spot in the period is that we continue to execute strongly on our manufacturing cost reduction initiatives.”
“We are also making solid progress on all our capital expenditure projects and recently completed the shrink film expansion project in Portugal on time and under budget. The integration of Cantech is already advancing well and we believe that the recently announced Capstone Partnership will provide us a path to enhancing our global competitiveness in woven products.
more detail at: https://www.itape.com/investor%20relations/press%20releases%20and%20reports